Alert July 28, 2009

Federal Court Grants Summary Judgment to Title Insurer on RESPA Claim

A federal court in Texas partially granted summary judgment in a lawsuit alleging that a title insurer charged rates beyond those set by the Texas Department of Insurance and split the excess with local title agents. The court held that the alleged practice did not violate the Real Estate Settlement Procedures Act, provided that actual services were performed for the premium. As it was undisputed that both the title insurer and agents actually performed services, no RESPA claim could lie. The court allowed plaintiffs’ state law claims for money had and received and breach of implied contract to continue, however. Click here for Hancock v. Chicago Title Ins., Co., No. 3:07-CV-144-D (N.D. Tex. July 9, 2009).